FBR Processes Pending Refund After FTO Intervention

The Islamabad field formation of the Federal Board of Revenue (FBR) has processed a long-outstanding tax refund within a three-week period following directives issued by Federal Tax Ombudsman Zafar ul Haq Hijazi.

According to reports, the matter involved a taxpayer seeking adjustment of refund claims for Tax Years 2017 to 2023 against existing tax liabilities. Officials indicated that despite prior engagement with the department, no action was taken, prompting the taxpayer to file a complaint with the Federal Tax Ombudsman (FTO).

Upon examination of the complaint, departmental responses, and hearing proceedings, the FTO determined that the delay constituted maladministration. The ombudsman observed that the department initiated action only after receiving formal notices from the FTO.

In an order dated April 8, 2026, the FTO directed the FBR to promptly process the refund and instructed all field formations to resolve outstanding refund claims before initiating recovery actions against taxpayers.

The order further pointed out that refund adjustments were being handled on a selective basis, while similar claims from other taxpayers remained pending.

Subsequent to the directive, the Islamabad field formation completed the refund processing within three weeks.

The FTO reiterated that refund claims must be addressed expeditiously and should not overlap with coercive recovery measures imposed on taxpayers.